PETES’s Missing Now What???

In the previous article we have conversed about the “Person entitled to enforce” hereinafter abbreviated to “PETE” In this article we are looking at What happens when there is no PETE? This is a question that is asked however, no answer is given by the party looking to foreclose. The party that is attempting to foreclose had a choice to make prior to attempting a foreclosure action. The party could seek monetary relief by utilizing the Tangible Promissory Note, or it could attempt foreclosure by using the Security Instrument that was to be attached to a properly perfected Tangible Promissory Note.

The problem is that for a party to seek a collection of a debt that was to be evidenced by a Tangible Promissory Note that party would need to have a valid Tangible Negotiable Instrument prior to seeking relief. You can not seek monetary damages and attempt foreclosure on a Security Instrument as well. You must choose which action you wish to take; either foreclosure or collection of the debt.

To add into the mix of the Tangible Promissory Note; which evidences the debt and Security Instrument that is to be attached to the debt; is the creation of a new instrument. This is defined as the eNote and the eMortgage, along with an intangible obligation which is created from the payment stream of the Tangible Promissory Note of the borrower. While this all may sound confusing, it is. There is now an identical twin of the tangible in an intangible format. The meaning of Intangible is: incapable of being perceived by the sense of touch, as incorporeal or immaterial things, impalpable. It is an electronic copy of a transferable record that is utilized by an electronic agent, not a natural person as required in most paper commercial transactions. These instruments are governed by UCC Article 8, or your states equivalence, and not UCC Article 3 which is reserved to Tangible Negotiable instruments. It is in the using of this electronic file where transactions are made in such a way that the transactions pertaining to the Tangible Instrument of which they are not.

An Intangible obligation is created by an Account Debtor using this electronic file. The problem with this is that this obligation is not created by the Tangible Obligee (The Borrower). This Intangible obligation is created using the payment stream of the Tangible Promissory Note of the borrower, and is affected when there is a presumed deficiency on the payment stream pertaining to the Tangible Promissory Note. Therein is where the problem lies. There was no proper transfer of the Mortgage Loan Instrument in its entirety and there was no transfer of rights. There is no PETE to the Tangible Promissory Note, and no Pete to the Security Instrument. The Party named in public record does not match the party if there is one named on the Tangible Promissory Note. Both PETE’s should be the same, however that is not the case, they are different. The chain of endorsements does not match the chain of title.

It is time to wake up and realize that there is no PETE and that he is not coming back, he no longer has a home.

Definitioner

Account

except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State. The term includes health-care-insurance receivables. The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.

Tangible Obligee

The party whom is named on the Tangible Promissory Note as either lender or is properly named as Payee on a payee line physically affixed to the Tangible Promissory Note.

Security Instrument

The Mortgage or Deed of Trust is seen as a Real Property Lien if filed of record and it is a separate contract listing an alternative means for collecting payment due under the Intangible Obligation, evidenced by the Tangible Promissory Note.

Tangible Promissory Note

A promissory note is a piece of paper that can be touched, that contains the promise to pay but the real significance is not the physical paper, but the legal rights which the paper confers, and hence the promissory note is defined by the legal debt . The Note is a tangible negotiable instrument that evidences the Intangible Obligation.

Mortgage Loan

A mortgage loan is a loan secured by real property through the use of a Tangible Promissory Note which evidences the debt and the encumbrance of property rights through the granting of a Mortgage or Deed of Trust which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.